A Company Estimates That Overhead Costs for the Next Year $\bold{\text{(Round your answer to two decimal places.)}}$

question 79

Multiple Choice

A company estimates that overhead costs for the next year will be $8,320,000 for indirect labor and $155,500 for factory utilities.The company uses machine hours as its overhead allocation base.If 400,000 machine hours are planned for this next year,what is the company's plantwide overhead rate? $\bold{\text{(Round your answer to two decimal places.) }}$

• A)$0.05 per machine hour.
• B)$21.19 per machine hour.
• C)$20.80 per machine hour.
• D)$0.39 per machine hour.
• E)$2.57 per machine hour.

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Definitions:

Tradable Pollution Rights

An environmental policy approach allowing companies to buy or sell the right to emit a certain amount of pollutants, aiming to reduce overall emissions cost-effectively.

International Competition

Involves the rivalry between entities from different countries in various fields such as sports, business, technology, and education, aiming to establish supremacy or achieve a particular goal on a global scale.

Subsidies

Financial support provided by governments to organizations, businesses, or individuals, often to support economic activities deemed beneficial or necessary.

Basic Economic Needs

Fundamental requirements including food, shelter, and clothing that must be met to sustain life and health.